Matakuliah Tahun : J0712 - Pengantar Bisnis : 2009 Managing For Productivity & Quality Pertemuan 13 Improving Quality and Production Efficiency •Outline: Productivity-Quality Connection Quality Improvement Tools For Quality Management Productivity & Quality As Competitive Tools Bina Nusantara University 3 The Productivity-Quality Connection • Productivity is a measure of economic performance that compares how much a system produces with the resources needed to produce it. • Quality is a product’s fitness for use–offering features that consumers want. Bina Nusantara University 4 Bina Nusantara University 5 Measuring Productivity Labor Productivity Gross Domestic Product Total Number of Workers Bina Nusantara University 6 Responding to the Productivity Challenge • A Reality Check for International Business Survival • Measuring Productivity – Labor Productivity • Productivity Among Global Competitors • National Productivity Trends – Level of Productivity • Growth Rate of U.S. Productivity • Uneven Growth in the Manufacturing and Service Sectors • Industrywide Productivity • Companywide Productivity Bina Nusantara University 7 International Productivity Comparisons Bina Nusantara University 8 Selected U.S. Industries Productivity Bina Nusantara University 9 Total Quality Management • What is Total Quality Management (TQM) (or Quality Assurance)? • The sum of all activities involved in getting high-quality products into the marketplace Bina Nusantara University • Tools for Competitive Advantage: – Competitive Product Analysis – Value-Added Analysis – Statistical Process Control • Process Variations • Control Charts 10 Quality Standards • Quality Management Requirements • ISO 9000 • ISO 9000:2000 • ISO 14000 – Environmental Performance Bina Nusantara University • ISO 9000 is a certification program attesting to the fact that a factory, a laboratory or an office has met the rigorous quality management requirements set by the International Organization for Standardization 11 ISO 14000 • ISO 14000 program certifies improvements in environmental performance Bina Nusantara University 12 Adding Value through Supply Chains • Supply chain refers to the group of companies and stream of activities that work together to create a product • The Supply Chain Strategy – Supply chain management (SCM) looks at the chain as a whole in order to improve the overall flow through the system • Reengineering Supply Chains for Better Results Bina Nusantara University 13 Supply Chain for Baked Goods Bina Nusantara University 14 Productivity and Quality as Competitive Tools • Investing in Innovation and Technology – Many U.S. firms that have invested in innovative technology have enjoyed greater productivity and higher revenues. – Investment in the Internet and information technology is rising. Bina Nusantara University 15 Productivity and Quality as Competitive Tools • Adopting a Long-Run Perspective – Continuous improvement is the ongoing commitment to improving products and processes in the pursuit of ever-increasing customer satisfaction Bina Nusantara University 16 Productivity and Quality as Competitive Tools • Emphasizing Quality of Work Life – Employee empowerment is the principle that all employees are valuable contributors to a firm’s business and should be entrusted with decisions regarding their work – Employee Training • Training is a key method of preparing employees for productivity-improvement programs. Bina Nusantara University 17 Productivity and Quality as Competitive Tools • Improving the Service Sector: Five Criteria for Judging Service Quality – Reliability – Responsiveness – Assurance – Empathy – Tangibles Bina Nusantara University 18